The Simplicity Premium - Consumers Will Pay More for Brands That Make Life Easier

Brand strategy consultancy Siegel+Gale has published a report revealing that despite the challenging economy, UK consumers are willing to pay more for brands that deliver simpler experiences and interactions.

The survey, which is published on media ideas hub Getmemedia.com, is the first annual Global Brand Simplicity Index, which is conducted among 6,000 consumers across seven countries including the UK, US, Germany and China. The idea behind the report is to uncover the perceived points of complexity in people’s lives, and the added value we place on having a more straightforward experience with brands across various industries – referred to as the “Simplicity Premium”.

Siegel+Gale defines simplicity in terms of: ease of understanding; transparency; caring; innovation and usefulness of communications.

To pinpoint the role and value of simplicity in consumer’s lives, the agency surveyed respondents’ answers to a variety of questions. The survey results were then used to develop the Simplicity Index, which generates a rating – or Simplicity Score – for each brand in each category, measured using the “simplicity methodology”.

Highlights of the survey’s findings include the revelation that the top brands on the Global Brand Simplicity Index, which included McDonalds, Nokia and Amazon, were those that make people’s lives simpler. They do this by communicating directly, clearly and without jargon, reducing stress by providing savings/value, saving time by increased convenience and accessibility, facilitating ease of use and interactions and enabling consumers to get more from life.

A good example of this is Nokia, which ranked second on the list of 60 brands. Despite being under threat from Apple and Android smartphones, the mobile giant is still the largest mobile phone seller and is now also credited with being the simplest; showing that ubiquity and interface familiarity are still important.

Commenting on the research, Professor Rob Waller, director of The Simplification Centre, said: "It's a fascinating survey. It shows that in a world of feature-obsessed competitors desperate to differentiate themselves, customers actually value simplicity, and claim they would pay more for it."

The report concludes that if industries want to regain consumer trust and thrive, they need to take a closer look at the negative repercussions of complexity.

Siegel+Gale contribute regularly to Getmemedia.com’s industry insight section focusing on brand strategy.

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